Hi guys, thanks so much for all the valuable feedbacks.
So after the inspection, my inspector told me that he didn’t see any signs of leaking, but the roof does show signs of wear and tear. He thinks the roof may have 5 years or less of life left. I told the seller that my offer did not take the roof replacement cost into consideration because the disclosure was sent to me one day later. I’d continue to honor my offer if seller agrees to compensate to some extent. But the seller stands firm on the price and told me nothing is wrong with the roof. I’m thinking to walk away from the deal now because of the potential roof replacement cost.
The other question I have is about market value determination. When you guys assess a market value of a property, do you rely on information provided from county estimated market value or zillow.com? Using my situation as an example, for this particular property:
- previous yr county estimated market value was 158K,
- this year county estimated value is $150K,
- zillow.com shows $144K and estimated rent is $1,420/mo.
- The property listing price was $148K, on the market for 12 days, property was listed last year for a couple of months but removed, reason unknown.
- The accepted offer was about $140K.
I initially thought this is a good buy because my acquisition price is below market value plus 5% discount off listing price, in addition I can achieve monthly rent 1% of the acquisition price. That’s why I was obsessed with this property.
After going through all the feedbacks, apparently, 1% is not enough, but I feel it’s very difficult to achieve 1.5% as Will suggested in my situation. So what resources would you guys use to determine a market value of a property? In my example, do you think that I actually gain immediate appreciation after acquiring the property since I bought it below market value? Thanks,
Peter
